MUNICIPAL ORDINANCE NO. 2017-02

MUNICIPAL ORDINANCE NO. 2017-02

AN ORDINANCE CONFIRMING AND RATIFYING THE TERMS AND CONDITIONS OF THE LOAN OF THE MUNICIPAL GOVERNMENT OF LUPON, DAVAO ORIENTAL WITH THE LAND BANK OF THE PHILIPPINES, AND AUTHORIZING THE HON. ERLINDA D. LIM, MUNICIPAL MAYOR, THIS MUNICIPALITY, TO SIGN ALL DOCUMENTS PERTAINING TO THE LOAN AND FOR OTHER PURPOSES.

Be it ordained by the Sangguniang Bayan of Lupon, Davao Oriental, that:

SECTION 1. Pursuant to Municipal Ordinance No. 2017-01 the Sangguniang Bayan of Lupon has authorized Municipal Mayor Erlinda D. Lim to apply for a loan with the Land Bank of the Philippines (LBP) in the total amount of Two Hundred Sixty-two Million Eight Hundred Forty Thousand (P 262,840,000.00) Pesos for the construction of municipal building, construction of overland terminal complex and acquisition of 2.5 hectares of lot of the Municipality of Lupon, Province of Davao Oriental.

SECTION 2. In consideration of the financial loan granted by the Land Bank of the Philippines, the Municipality of Lupon, Province of Davao Oriental, hereby ordains:

To confirm and ratify the terms and conditions of the loan as stipulated in the loan agreement and authorizing the Municipal Mayor Erlinda D. Lim to sign documents pertaining to the loan and in behalf of the Municipality of Lupon, Davao Oriental;
To confirm, approve and ratify all previous representations, acts and warranties and all other terms and conditions of the loan;
To authorize the assignment of the LGU’s Local Revenues and 20% of Internal Revenue Allotment (IRA) and other income, revenues and collection as collateral/security to the loan obtained and declaring them to be available and not restricted by law on obligations;
To direct the Municipal Treasurer and Accountant to enter the loan in the appropriate books of the LGU;
To appropriate the necessary amount for loan repayment in the LGU’s annual budget until the loan, interest and other charges are fully paid; and
To authorize LBP to deduct for set-off and/or deduct amounts from any deposits of funds of the LGU with LBP and apply the same to the payment of the loan or any portion thereof, or interests and penalties thereon as may be deemed necessary by LBP.
SECTION 3. The Municipal Mayor is hereby granted the authority to sign all the documents relative to the loan.

SECTION 4. This Ordinance shall take effect upon its approval.

ENACTED by the SANGGUNIANG BAYAN of the Municipality of Lupon this 6th day of February 2017.